4.1 Trial Balance Flashcards
1
Q
5 Errors Revealed by the Trial Balance
(TAPPU)
A
- Transposition error
- Addition error
- Posting error
- Partial Omission error
- Unequal Posting error
2
Q
Transposition error
A
- An amount has been transposed
- Eg; £159 has been recorded as £195
3
Q
Addition error
A
A mistake has been made when adding and balancing the account
4
Q
Posting error
A
- When we have posted one of the entries to the wrong side of the T-account
- We have 2 debits or 2 credits for one transaction
5
Q
Partial omission error
A
We have only recorded one entry for a transaction
6
Q
Unequal posting error
A
- We have not posted the same amount for debit and credit
- Eg; we posted £1500 in Dr of purchases, but only £150 in Cr of bank
7
Q
6 Errors not revealed by the Trial Balance
(Old Racoons Chop Odd Potatoes Correctly)
A
- Omission error
- Reversal of Entries
- Commission error
- Original Entry error
- Principle error
- Compensating error
8
Q
Omission error
A
A transaction has been missed out of the accounting records
9
Q
Reversal of entries
A
We have used the correct accounts but we have Dr and Cr the wrong side of both accounts
10
Q
Commission error
A
- One of the entries is correct, but for the other we have used the correct classification of account but the wrong account
- Eg; Dr a TR account but the wrong TR account
11
Q
Original Entry error
A
An error has been made when entering a source document into the daybooks
12
Q
Principle error
A
- One of the entries is correct, but for the other entry we have Dr or Cr the wrong classification of account
- Eg; Dr an asset account instead of an expense account
13
Q
Compensating error
A
When two unrelated errors of the same amount happen in different accounts and cancel each other out
